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Erdogan pulled a huge pump and dump scheme a few days ago. He kept repeating everything that makes the Turkish Lira weaker and weaker, he and his government cla
by mrtksn 5y ago
Erdogan pulled a huge pump and dump scheme a few days ago. He kept repeating everything that makes the Turkish Lira weaker and weaker, he and his government claimed that the plan is to lower the lira and compete on price and the lira is not weak because they failed but because that's the plan. We will be the next China, they said.
Then on the night of Dec 20, he introduces a financial instrument where the government offers %14 interest and guarantees to pay the any difference if it happens that the lira devalues. With a coordinated effort, government banks start selling $USD the whole day and whole night when the markets are shallow and Turks are asleep, selling off at least 7B$ of the reserves of the central bank and who knows how much of other banks, lowering the $USD from 18 the night Turks went to bed to 11 at the morning.
Look at that graph: https://twitter.com/tashecon/status/1473065067914702852 https://twitter.com/tashecon/status/1473065067914702852
Then they continued to sell off the national $USD reserves, conducting a full blown media propaganda operation including advertisement that is obviously produced at least days before the event. Looking back, just the day before the stock market crashed with %10 and there are rumours of certain businessman being informed that the government will change it's stance and intervene strongly.
Then we had the Economy minister bragging how they screwed up the little guy who bought $USD at over 14 in an attempt to protect their savings, adding that no institutional investors were harmed in the process.
It's just a crypto-bros level of shake off organised and executed by the government. They claim that the orthodox economists are to be blamed for the losses, how silly they are for not accounting for the government tricking the people. Imagine FED giving guidance for interest rates decrease then out of the blue dramatically increasing the rates at midnight once the pals of the president position themselves correctly and saying that the public shouldn't have listed to the economists.
At this very moment, Erdogan is having an "interview" that is broadcasted by multiple TV channels and as expected they again started selling off $USD as he began speaking, pushing the dollar from about 12 to 10.
Take a look at that chart: https://imgur.com/a/CxYYfyL https://imgur.com/a/CxYYfyL
That's %20 daily volatility.
- janmo 5y agoI wonder how long their pump will last, their USD reserves are now exhausted, their new savings plan will also cost a fortune.
- darkhorn 5y agoThey are going to continue selling land and military companies to Qatar and other Arabs.
- ejanus 5y agoLinks or examples
- darkhorn 5y agohttps://www.birgun.net/haber/erdogan-dogruladi-katar-emiri-nin-annesi-kanal-istanbul-arazisinden-arsa-almis-280926 https://www.birgun.net/haber/erdogan-dogruladi-katar-emiri-n... https://tr.euronews.com/2019/02/09/erdogan-tank-palet-fabrikasini-alan-firmanin-katar-ve-turk-ortakligi-var https://tr.euronews.com/2019/02/09/erdogan-tank-palet-fabrik... https://www.cumhuriyet.com.tr/haber/turk-telekomun-satisini-ve-hariri-ailesini-unutmadik-unutturmayacagiz-1833153 https://www.cumhuriyet.com.tr/haber/turk-telekomun-satisini-... https://www.aykiri.com.tr/aselsan-satildi-mi-aselsan-satildi-iddiasiyla-ilgili-resmi-aciklama-geldi/17182/ https://www.aykiri.com.tr/aselsan-satildi-mi-aselsan-satildi...
- ejanus 5y agoThanks.
- bsanr2 5y ago>Imagine FED giving guidance for interest rates decrease then out of the blue dramatically increasing the rates at midnight once the pals of the president position themselves correctly and saying that the public shouldn't have listed to the economists. The Fed has done worse, just on a longer timescale. Alan Greenspan may, in fact, be the devil.
- wheelerof4te 5y agoThe plan is to get rid of $US reserves and replace them with a currency of some other country. Maybe China. Bold move, and a smart one, considering the outright hostile actions by the US towards the country. No dollar reserves, means no more economic bullying by the US.
- deleted 5y ago[deleted]
- NicoJuicy 5y agoThen Turkey will become China's puppet, like Russia is now. Russia is already losing their strong engineering force to China, their resources are bought cheaply by China and China is not even remotely investing in Russia. Much to the dismay of Putin. Turkey next?
- wheelerof4te 5y agoSpeaking like half of the world isn't America's puppet already. China at least doesn't have military bases all over the world to ensure everybody stays in line. I wonder how many European countries would intentionaly harm their economies by placing sanctions on Russia if the US troops weren't there.
- NicoJuicy 5y agoNobody wants China in their backyard. The US is mostly there as protection. Where China is claiming territory it doesn't have any claims to and is using severe military pressure for it. Other than that, the ports that China does have is mostly because of loans that countries can't repay. Where they then claim infrastructure for their own. You don't seem to be informed on the topic?
- wheelerof4te 5y agoI am well informed, but you seem to be ignorrant of the fact that most countries don't need US' racke..., oops, I mean protection. Should we ask people of Syria what is the US doing on their soil? Or Iraqis, who want them out but they for some reason don't wanna leave. As for loans...well, maybe don't take them if you can't repay them. The West is lending too, you know. And those credits aren't cheap.
- SilasX 5y agoWow, that’s bizarre. I don’t recall governments ever aggressively propping up their currency, usually they devalue it as a silent tax or export subsidy.
- throwaway472927 5y agohttps://en.m.wikipedia.org/wiki/Black_Wednesday https://en.m.wikipedia.org/wiki/Black_Wednesday ?
- tim333 5y agoYou call it a "pump and dump scheme" but only give evidence of pumping and not dumping. A dump would be Erdogan buying back a load of USD at 10 to 12 but I'm not sure they are doing that?